Debt Markets Today - January 14, 2021

CIS EUROBOND MARKETRussian sovereign Eurobond prices were supported yesterday by a pullback in US Treasury yields, which had been climbing since the start of the new year. Long-dated Russian sovereigns added 0.6-1.1 pp, followed by intermediate paper (up 0.2-0.5 pp).GOVERNMENT DEBTOFZ yields edged up 1-2 bps in the first half of yesterday's trading amid a moderate drop in global risk appetite. They later rose another 2-3 bps in the middle of the curve and 3-5 bps at the long end after what it seems market participants saw as disappointing auctions, where the Finance Ministry was only able to place R31 bln in total. The yield on the 7y nominal OFZ 26236, which was one of the issues on offer, rose 7 bps after the auction (see our story below). OFZ yields rose more than yields on most other EM sovereign bonds yesterday, perhaps catching up after their slower rise over the previous two weeks, when Russia was on holiday. Trading volumes again totaled R13 bln yesterday.STORIES> Finance Ministry switches to purchasing FX in January> Prices rise 0.4% over first 11 days of January> CPI linker finds higher demand at auction than nominal issue> CBM prices EUR600 mln senior Eurobond issue at 3.1%> Alrosa posts exceptionally strong December diamond sales> Belarusian inflation reaches 7.4% in 2020